A $250 million issue of Islamic leasing bonds (Ijara sukuk) was recently today on the Bahrain Stock Exchange (BSE). The listing brings to a total of $1.25 billion the value of bonds listed on the BSE.

The bonds, which were issued on May 27, carry a maturity of five years. The rental return on the sukuk is 60 basis points over the London inter-bank offered rate (Libor) for six months.

The issue was arranged by the Bahrain-based Liquidity Management Center (LMC) in coordination with the Bahrain Monetary Agency (BMA). It was the largest-ever offering of Bahrain Government Islamic bonds.

Ijara is the transfer of ownership of a service or asset for an agreed upon consideration. Ijara securities can be issued in the capital markets to mobilize deposits for the development of long-term infrastructure projects. The Ijara securities issued by the BMA are directly and unconditionally guaranteed by the government of the Kingdom of Bahrain. — (menareport.com)